Which of the following is not a tool of monetary policy?
A)open market operations
B)reserve requirements
C)changing the discount rate
D)increasing the government budget deficit

Question

Quizplus · Accepted Answer

Increasing the government budget deficit is not a tool of monetary policy. It is a tool of fiscal policy, which involves government spending and taxation to influence the economy. Monetary policy involves the regulation of the money supply and credit availability by a central bank. The other options (A, B, and C) are all tools of monetary policy.

Which of the Following Is Not a Tool of Monetary